pre-bid conference on 27.02.2015 queries received from the

Pre-Bid Conference on 27.02.2015

QUERIES RECEIVED FROM THE PROSPECTING BIDDERS UNDER THE TENDER FOR SALE OF BAYTES UNDER

E-TENDER CUM E-AUCTION NO: APMDC/M&S-87/BAR-GT/15 DATED:12.02.2015

1. Al Ghanaem Industrial Co.

Sl.

No.

Query Reply

1. Cancelled Cheque: This is not a regular practice here in Kuwait, so what alternative we have for this

No change in the terms and conditions of the Tender Document

2. Do we need to provide audited financials for last 3 years to show our capabilities, if so, please note that

we have financial year starting from 1st January till 31st December, is that fine with APMDC.

Audited Annual Reports for the last 5 (five) years have to be submitted. You may also refer to Addendum 1

dated 25.02.2015 in the website of APMDC/ MSTC. Bidders may submit the Audited Annual Reports based on the Financial Year followed in their country.

3. Currency conversion: We understand that prices will be fixed in INR and the prevailing conversion rates will

be charged, please clarify

Please refer to Clause 27 of the Tender Document

4. We understand that the prices published in Industrial Minerals magazine will be the base for the next

month‟s pricing, in case the price calculation goes below the contract price, will that be applicable?

No. Please refer to Clause 27 of the Tender Document

5. Also we would like to know that what will be the time

frame of delivery after making the payment.

APMDC will provide a delivery schedule every month

in advance and intimate the same to the Buyers. APMDC will supply the material within 30 days of the

advance payment.

6. For every .01 increase in SG there will be prorata increase @1.5%, in case of lesser SG from the mine,

will there be reduction on prorata basis?

Not applicable. The prices are based on the 4.20 SG in respect of „Drilling grade 4.20 SG (A Grade) Barytes‟

and based on 4.10 SG in respect of „Drilling grade 4.10 SG (B Grade) Barytes‟. Please refer to Clause 29

of the Tender Document.

7. Since APMDC is going to follow international pricing standard are you going to follow international SOP for

APMDC intends to appoint third party inspection agencies for determination of quality. APMDC will

testing, which lab will be used as reference laboratory, is it going to be APMDC‟s own lab or a 3rd party

laboratory? If it is going to be APMDC‟s own lab then, is this lab ISO/API accredited? If not then what

international standards they are following and what all international accreditations they have? If not, then which 3rd party lab will be used as reference and what

are their credentials?

invite offers and empanel third party inspection agencies. Till such arrangements for third party

inspections are made, the quality determination will be as per the Clause 28 (iii) of the Tender Document.

2. M/s Varshini Exim Pvt Ltd

Sl. No.

Query Reply

1. Payment of Tender fee of Rs.50,000/- only is ok for participating in e-Tender cum e-Auction for both the

Grades of 4.20 Specific Gravity and 4.10 Specific Gravity.

Yes. Bidders have to pay Rs. 50,000/ in case of Indian Bidders and USD 800 in case of International Bidders

for participating in the e-tender cum e-auction for either one Grade or for both the Grades.

2. Please clarify when the submission of one Technical

Bid for participating for both the Grades of 4.20 Specific Gravity and 4.10 Specific Gravity.

Yes. Only one Technical Bid is required to be

submitted.

3. Kindly clarify whether the Indian Exporter entitled for

allotment of 4.20 Specific Gravity and 4.10 Specific Gravity Grades of Barytes under the above e-Tender

cum e-Auction can Grind the Lumps at others Grinding facilities locally and Export the Powder.

Buyers may grind the Barytes Lumps into powder at

other grinding facilities locally only for export purposes. Buyers shall obtain prior permission of

APMDC for the quantities intended to be converted to powder from time to time. Any variation in Statutory

levies in respect of conversion into powder shall be to the account of the Buyers.

4. Kindly clarify whether the Indian Exporter entitled for

allotment of 4.20 Specific Gravity and 4.10 Specific Gravity Grades of Barytes under the above e-Tender cum e-Auction can Grind the Lumps at others

Grinding facilities locally and supply the Powder to the Local Buyers.

Please refer to Sl. No. 3 above. The grinding of Barytes

Lumps into powder is only permitted if it is for export purposes.

Sale of Barytes lumps/ powder indigenously to local buyers is not permitted.

3. M/s Gimpex Ltd

Sl. No.

Query Reply

1. Assurance of supply of material.

The Corporation has not supplied full contracted quantity of lumps to us in the last contract (dt.20th August, 2011). Against the contracted quantity of

3.75 lakhs tonnes of lumps A Grade, for three years period, we have been supplied only 2/3rd quantity

approximately. This means that the Corporation has supplied 2 year contract quantity in 3 year

period. Our request for supply of the balance quantity is still pending with the Corporation.

In this situation and with the deteriorating level of mobilization of the mining contractor, we request the

Corporation to give a clear and assured road map of supplies with stocks, production and its commitment

as well as ability to meet the contracted quantities. We understand that current stocks are earmarked for

supply to various grinding plants; if so there would not be any materials even at the first month since no

production is expected at least for 6 months for want of machinery as well as dumping plot.

In this situation, how does the Corporation propose to effect supplies of contracted quantities to the

successful bidders?

APMDC has already taken required steps to address the production problems so that there would be

adequate production to meet the commitments. APMDC will provide a delivery schedule to the Buyers

upon signing of the contracts.

2. Globally competitive price

We are pained to note that the Corporation has

disregarded all our discussions and submissions

No change in the terms and conditions of the Tender

Document.

about prevailing global prices. The Corporation‟s decision to accept industrial minerals published prices

as gospel truth is a very unfortunate and erroneous decision. Industrial Minerals is a privately published

and un-governed and unregulated publication with zero accountability. Since the Chinese and Morocco prices are much lesser than Indian prices. This means

there is an oversupply situation in the market. The American barite buyer‟s imports have drastically

reduced. In such situation no customer/consumer would like to pay abnormal premium on Indian barite, especially when abundant quantities are available

from China as well as from Morocco.

The floor price of Rs.6750/- pmt + Royalty + infrastructure development cess + VAT etc. for “A”

Grade Barite and R.5360/ pmt for “B” Grade lumps are way above the current global prices.

We request you to kindly revise this in line with the Chinese export price so that the Indian barite remains

globally competitive, by reducing the floor prices.

3. Contract Price

The tender provides for price indicative on monthly basis based on prices published in industrial minerals

as well as currency fluctuation. This particular provision is violating of principle of sound business

practice. Any successful price variation mechanism must have following components:-

a) It should move both up and down with market

conditions. b) The speed of its movement or the currency

fluctuation prices adjustment should be synchronized with the buying practices of the end users.

Downward movement of the price below the contract price is not permitted as per Clause 27 of the Tender

Document. However, downward movement up to the contract price is allowed.

c) The price variation basis should be in practice and acceptable to all stake holders including

consumers. The barite importers do not buy Barites monthly

quantities at the time of buying lumps. Normally they like to buy long term. The prices are increased or decreased only when new contract is entered into,

keeping several factors in mind predominantly demand/supply ratio and the Chinese prices. The

prices published in the industrial minerals are never taken as base for price fixation by the buyers.

In the current tender provision; a successful bidders

having paid advance for the material would not know

the final price at which he will be billed until he finally receives the supplies- which could be in the same

month or the next or next to the next month. Such a provision makes the bidders totally blind to the cost of

procurement and at the same time the bidder is bound by the contract with the APMDC with all the penal provisions for the performance. It is appreciable

that the Corporation wanted to increase its revenues whenever there is a rise in the international prices of

the barites. However the Corporation wants to retain the fixed base price as the minimum sale price irrespective of down fall in the international market

prices.

4. Define "best effort basis"

Please explain the meaning of this expression; which has been used on page No.25 clause 28 (i). We note

that the Corporation has made provision to offer 4.24 plus/minus 0.03 sp. gr barite against “A" grade. It has

not considered our similar request with regard to B grade. We request the Corporation to make the quality

of B grade also as 4.15 min upto 4.20 so that supplies

In case of ‘Drilling grade 4.20 SG (A Grade)

Barytes’: APMDC will supply 4.23 SG grade Barytes on an average to the Buyers. The Buyers shall be obligated to lift the quantities even if the material is

lesser than 4.23 SG grade. APMDC will provide higher grade material to compensate for the lower grade

material to the Buyers in the same month, so as to maintain an average of 4.23 SG grade in the month.

to domestic end users like ONGC/OIC can be made from this quality.

The Buyers are required to pay a premium of 1.5% of the sale price per MT for every 0.01 unit increase in

the specific gravity over and above 4.20 and below 4.28, fractions pro-rata.

In case of ‘Drilling grade 4.10 SG (B Grade) Barytes’: No change in the terms and conditions of

the Tender Document.

Bidders may note that the intended quantities are meant for export purposes only. Supplies to domestic

end users are not permitted.

5. Inspection/determination of quality

The Corporation has, in its four decades of history of sale of barites always permitted sampling analysis by

an independent inspection agency in case of dissatisfaction with the methodology of sampling and analysis of APMDC. The relevant clause from the last

tender is reproduced as under:- "The quality as determined by APMDC in its

laboratories is final for all intents and purposes. If the buyer at any time is dissatisfied with the methodology of sampling and analysis done by APMDC, he may

advise APMDC to offer the cargo in stacks of 2000 to 5000 mts for stack sampling and analysis by an

inspection agency, who is on the panel of export inspection council. Such stack sampling and analysis

done by the inspection agency of the buyer at their cost if found satisfactory by APMDC, APMDC may agree to such results, Otherwise APMDC has the

option to get the stack sampling and analysis done by an independent inspection agency nominated by

APMDC will be final and binding on the buyer, Such sampling and analysis charges shall be borne by the

buyer".




In the present tender clause 28 (iii) provides for

"random sampling". It is to be noted that the sampling and testing team of the Corporation has dwindled

while number of customers the Corporation is dealing has gone up (because of number of mills), putting heavy pressure on work load of the

sampling/analyzing team. This has led to serious quality disputes in the past, with us landing with very

sub-standard qualities. Your local team declared higher qualities for reasons best known to them. APMDC has never billed for correct quality. There has

been difference and because of lack of stocks due to lesser production, we are compelled to lift whatever

material is given. In fact 3rd party sampling and analysis was pleaded to cross check the quality.

As an exporter, we have to guarantee the quality to meet contractual specification at the destination.

Multiple handling from the mine to the destinations leads to contamination. The sampling by APMDC

personnel should be balanced with the earlier provision of sampling and analyzing by an

independent inspection agency as in the past.

6. Quality premium

The Corporation is fully aware that:-

a. Against the API specification of 4.20, the exporters are required to load 4.23 / 4.22 sp. gr. material in the ship to safeguard their

interest and to avoid the risk at the destination. Barite being a natural product, the

entire ship load cannot be consistent quality. Hence sampling variation is likely. Similarly chemist to chemist test variation and laboratory

a. In case of ‘Drilling grade 4.20 SG (A Grade) Barytes’: APMDC will supply 4.23 SG grade Barytes on an average to the Buyers. The

Buyers shall be obligated to lift the quantities even if the material is lesser than 4.23 SG

grade. APMDC will provide higher grade material to compensate for the lower grade material to the Buyers in the same month, so

to laboratory test variation are also possible. For such reasons as well as risk of handling

induced contamination are mitigated only by higher quality when compared to API

specification. We have been buying barite from other countries and suppliers from all such countries shipment quality varies between 4.23

to 4.27 sp. gr. Hence we request the Corporation to retain base quality of A grade at

4.25 and base quality of B grade to be retained 4.15, particularly keeping in view the value of shipment of 40,000 Mts would be to the tune of

Rs 25 Crores. b. The Corporation is fully aware that no buyer

gives quality based premium to us. This is a matter of record. We have been accepting to

pay some nominal premium to APMDC in the past. However, proposed premium of 1.5% is not only going to hamper the prices but is also

likely to induce malpractices of various types at the ground level.

We therefore request the Corporation to remove the

premium of 1.5 % and reintroduce a nominal premium/penalty of Rs.25 pmt of 0.01 units for A Grade and Rs.20/- pmt for each 0.01 unit for B grade

fraction pro-rata, matching penalties should also be provided for.

as to maintain an average of 4.23 SG grade in the month.

The Buyers are required to pay a premium of

1.5% of the sale price per MT for every 0.01 unit increase in the specific gravity over and above 4.20 and below 4.28, fractions pro-rata.

In case of ‘Drilling grade 4.10 SG (B Grade)

Barytes’: No change in the terms and conditions of the Tender Document.

b. No change in the terms and conditions of the

Tender Document.

7. Performance Security Deposits The Corporation may kindly agree for accepting the

10% value to be given by bank guarantee instead of retaining 25% of the PSD value from the EMD.

No change in the terms and conditions of the Tender Document.

8. Interest on delayed deliveries

APMDC will provide a delivery schedule every month in advance and intimate the same to the Buyers.

We request the Corporation to consider paying 18% interest in case of delay in deliveries beyond 15 days

from the date of acceptance of advance payment.

APMDC will supply the material within 30 days of the advance payment.

In case there is a deviation of more than 10% in the

supply of Barytes from the agreed delivery schedule in a month by APMDC, APMDC will return the interest earned on the payments received for the undelivered

quantity after the expiry of 30 days from the date of receipt of the advance.

In the event that either party is rendered physically unable by a Force Majeure event to supply or lift the

agreed quantities, no penalty will be applicable and the contract period will be extended by a period equal

to the period of the Force Majeure event.

The term Force Majeure event shall mean any acts of God, war, civil riots/ movements, fire directly affecting the contract, flood, mine inundation, earthquakes,

hurricane, lockouts, strikes, civil war, etc.

In case there is a backlog at end of month, APMDC will clear the backlog. Only after clearing the backlog,

the next month‟s supplies will be carried out. In case the Buyers do not lift the backlog quantity,

APMDC shall be free to sell the quantities in outside market.

4. M/s IBC Ltd.

Sl. No.

Query Reply

1. SPECIFIC GRAVITY: For the past so many years, viz., since 1985, the basic price ex-Mine has been on the

basis of Baryte Lumps with Sp.Gr. 4.25 for "A" Grade and 4.15 for "B" Grade minimum and Lump size 8" max. This is in accordance with the international

practice. The deviation will result in Indian Suppliers completely losing the confidence of buyers in several

countries. In this regard the Corporation must recognize the fact that 4.20 and 4.10 Sp. Gr. are the

specifications required for Barytes Powder as per API Standard when the material is finally delivered in powder form at the RIG SITE both ON SHORE and

OFF SHORE globally. In the process of conversion of Baryte Lumps into Powder there is always loss of 2

points on the Specific Gravity apart from maintaining quality of material from APMDC Mine site to the final

Exit Port in India and then at the destination which will all include at least about six handling points.

In case of ‘Drilling grade 4.20 SG (A Grade) Barytes’: APMDC will supply 4.23 SG grade Barytes

on an average to the Buyers. The Buyers shall be obligated to lift the quantities even if the material is lesser than 4.23 SG grade. APMDC will provide higher

grade material to compensate for the lower grade material to the Buyers in the same month, so as to

maintain an average of 4.23 SG grade in the month.

The Buyers are required to pay a premium of 1.5% of the sale price per MT for every 0.01 unit increase in the specific gravity over and above 4.20 and below

4.28, fractions pro-rata.



2. PRICE: The tender stipulates a condition that prices

will be reviewed on a monthly basis, basing on the prices reported in Industrial Mineral Magazine. The international practice of Baryte sale price by several

other countries is on contract basis and exports of Baryte Lumps are made on yearly basis with

shipments in lots varying from 25000 to 45000MT per shipment and exporters enter into annual contract

with Overseas buyers for supply on annual basis. To build a stock of 25000 to 45000MT in Port itself will take 3 to 4 months' time. Secondly, the prices reported

in Industrial Mineral Magazine do not reflect actual export price; they collect information from the

suppliers who always give them higher figures in order


Document.

to increase their bargaining power with the buyers.

3. There is no provision made for third party sampling in

case of dispute which is against all established commercial practices.

APMDC intends to appoint third party inspection

agencies for determination of quality. APMDC will invite offers and empanel third party inspection agencies. Till such arrangements for third party


5. M/s Trimex Ltd.

Sl. No.

Query Reply

1. MINIMUM PRICE

The minimum price fixed for 4.20 SG („A‟ Grade) at Rs. 6,750/- as against the last prevailing price of Rs. 4,475/- in August, 2014 amounts to an increase of

66%. Likewise for 4.10 SG („B‟ Grade) Barytes Rs. 5,360/- as against Rs. 3,384/-amounts to an increase

of 63%. Further more specific gravity for „A‟ grade and „B‟ grade were 4.25 and 4.15 respectively as against

present 4.20 and 4.10 respectively for „A‟ and „B‟ grades. The minimum price fixed is abnormally high as explained above may be considered to bring down

the floor price.


2. PREMIUM AND QUALITY The buyers are required to pay a minimum of 1.5% of

the sale price per MT for every 0.01 unit increase in specific gravity over and above 4.20 and below 4.28 in

fractions prorata which works out to Rs. 101/- for „A‟ Grade and Rs. 80/- for „B‟ Grade as against Rs. 25/- and Rs. 20/- respectively in the immediate last

tender. Hence a lump sum premium for every unit as earlier may be restored.


3. SUPPLY OF CONTRACTED QUANTITIES.

As seen in the past, for the last 3 tenders right from 2005-2008, 2008-2011 and 2011- 2014 M/s. APMDC

never supplied the contracted quantities within the

APMDC will provide a delivery schedule every month in advance and intimate the same to the Buyers.


contracted period and the buyers left high and dry with huge backlog quantities remained

unsupplied. M/s. APMDC shall provide abundant assurance of how they are able to supply contracted

quantities now or history repeated. M/s. APMDC shall supply any backlog quantities within the next quarter and failure to supply so, APMDC shall compensate to

the buyer. This will only ensure fair play between the contracted parties.

In case there is a deviation of more than 10% in the supply of Barytes from the agreed delivery schedule in

a month by APMDC, APMDC will return the interest earned on the payments received for the undelivered



agreed quantities, no penalty will be applicable and the contract period will be extended by a period equal to the period of the Force Majeure event.

The term Force Majeure event shall mean any acts of

God, war, civil riots/ movements, fire directly affecting the contract, flood, mine inundation, earthquakes,

hurricane, lockouts, strikes, civil war, etc. In case there is a backlog at end of month, APMDC

will clear the backlog. Only after clearing the backlog, the next month‟s supplies will be carried out.

In case the Buyers do not lift the backlog quantity,


4. ADVANCE PAYMENT FOR THE SUPPLIES

M/s. APMDC is collecting advance payment well

before the delivery of the material, sometimes going beyond few months. Further in the present tender schedule it is said that the price will be escalated

taking the exchange fluctuations as well as the international prices as published in the Industrial

Minerals. No such increase in prices shall be charged since the payment has been made in advance and whatever the rates prevailing at that point of time


Document.

shall hold good.

5. CONTRACT PRICE In the tender schedule it is informed that the price will

be charged as per the fluctuations in the $-Rupee and also based on the then prevailing international

prices as published in the Industrial Minerals (IM) from time to time. Why the price to be linked to the

two variables, instead it may be done on the basis of RBI Index which is authentic. Why M/s. APMDC have chosen Industrial Minerals Bench Mark as it is not a

listed entity or their price is not traded on an exchange.


6. INTEREST ON DELAYED DELIVERIES

If M/s. APMDC not able to supply the material within

15 days from the date of acceptance of the advance payment, we request the Corporation to pay interest @ 18% on the delayed supplies.


in advance and intimate the same to the Buyers. APMDC will supply the material within 30 days of the

advance payment. In case there is a deviation of more than 10% in the

supply of Barytes from the agreed delivery schedule in a month by APMDC, APMDC will return the interest

earned on the payments received for the undelivered quantity after the expiry of 30 days from the date of

receipt of the advance. In the event that either party is rendered physically

unable by a Force Majeure event to supply or lift the agreed quantities, no penalty will be applicable and

the contract period will be extended by a period equal to the period of the Force Majeure event.

The term Force Majeure event shall mean any acts of God, war, civil riots/ movements, fire directly affecting

the contract, flood, mine inundation, earthquakes, hurricane, lockouts, strikes, civil war, etc.

In case there is a backlog at end of month, APMDC

will clear the backlog. Only after clearing the backlog, the next month‟s supplies will be carried out.

In case the Buyers do not lift the backlog quantity, APMDC shall be free to sell the quantities in outside

market.

7. DETERMINATION OF QUALITY

We request M/s. APMDC to confirm whether their Lab is ISO certified or not, as the Corporation is depending

on international pricing and do M/s. APMDC follow international standards for testing and do have any international accreditation.




8. PERFORMANCE SECURITY

In the tender schedule, it is specified that 25% of the Security Deposit shall be paid by Bankers Cheque or

Demand Draft and the balance 75% by way of Bank Guarantee as against the earlier procedure of only

Bank Guarantee. Locking up buyers amount in cash to the extent of 25% is not warranted, hence the

earlier practice may be restored. Further, the Performance Bank Guarantee(PSB)return within 7 months from the date of expiry of the contract is too

large a period. On successful completion of the contract the PSG amount shall be payable within

1 month.


Document.

6. M/s Ghousia Minerals Ltd

Sl. No.

Query Reply

1. The Bidder shall have a minimum Networth of Rs.15 Crores at the closing of the preceding Financial year

in 2013-14 Please note as old Companies like us will not have

that kind of networth, moreover we are eligible in all the other criteria's like 50 crores Turnover, 10 crores

average Export Turnover during the Last 3 financial years i.e. 2011-12, 2012-13, 2013-2014.Hence we

request Apmdc to waive this clause and give us a chance to bid.


2. Conflict of Interest: A Bidder shall not have a conflict of interest (the " Conflict of Interest") that affects the

Bidding Process. Any Bidder found to have a conflict of Interest shall be

disqualified. In the event of disqualification, APMDC shall forfeit the Bid Security or Performance Secutity

Deposit, as the case may be, as mutually agreed geniune preestimated compansation and damages payable to APMDC for, inter alia,the time, cost and

effort of APMDC, including consideration of such Bidder's Bid, without prejudice to any other right or

remedy that May be available to APMDC hereunder or otherwise. Without limiting the may be generality of

the above, a Bidder shall be considered to have a Conflict of Interest that affects the Bidding Process,if :

Please Explain this clause

Clarified during the Pre-Bid Conference.

3. Bidder's shall maintain for a minimum Quantity of Bidders may bid for either „Drilling grade 4.20 SG (A

1,00,000 Metric tonne's of 4.20SG and 40,000 Metric tonnes of 4.10SG.

Please explain this Should we bid for both the grades

A & B or can we bid for any one grade.

Grade) Barytes‟ or „Drilling grade 4.10 SG (B Grade) Barytes‟ or both.

4. Please note that monthly change in APMDC sales price

will create difficulty as most of our buyers require long period rate validity atleast for one year and this

practice can give us huge loss.Hence request to please maintain same price for complete tender period as the procedure was earlier followed by APMDC.


Document.

7. M/s Ashapura International

Sl. No.

Query Reply

1. As per API Standard the minimum requirement for powder is 4.20. So far Apmdc has given A'grade

minimum 4.25 SG. While crushing two points may loose. So increase SG to 4.22 Accordingly B'Gr to 4.12 as minimum.

In case of ‘Drilling grade 4.20 SG (A Grade) Barytes’: APMDC will supply 4.23 SG grade Barytes

on an average to the Buyers. The Buyers shall be obligated to lift the quantities even if the material is lesser than 4.23 SG grade. APMDC will provide higher

grade material to compensate for the lower grade material to the Buyers in the same month, so as to

maintain an average of 4.23 SG grade in the month.

The Buyers are required to pay a premium of 1.5% of the sale price per MT for every 0.01 unit increase in the specific gravity over and above 4.20 and below

4.28, fractions pro-rata.



2. APMDC has to Fix-up a Constant Price so as to plan our Export Business which will be carried our for a

minimum period of Two months for a Bulk Shipment. Periodical Price Fluctuation may incur heavy Loss & Damage and exporter cannot work with uncertain

price.


3. Normally Overseas Tenders and Contracts obtained by Exporters for One Year Period.

In the absence of Fixed Price it is different to Exporter can Participate in those Tenders by the exporter.

Moreover the Operational Cost incurred to Port is more than 40% without profit margin.


Therefore this Clause to be Removed.

4. Premium should be a Constant amount so as to enable the Exporter for future Exports Plan.

Instead of 1.5% APMDC has to Fix amount and it cannot be very high.


5. How much Quantity to be produced maximum? How much Quantity to be allotted to Millers?

Clarity required before Tender opening.

If APMDC produces more Quantity and sells Locally

Exporters' Interest will be affected.

APMDC intends to sell about 5 Lakh MTs of „Drilling grade 4.20 SG (A Grade) Barytes‟ and about 2 Lakh MTs of „Drilling grade 4.10 SG (B Grade) Barytes‟ on

Ex-Mangampeta Barytes mine/ stockyard basis for export purpose/ internal consumption for oil well

drilling in India/ abroad, through this Tender. Balance quantity will be allotted to Millers.

Clause 39 (ii) explains the procedure for allotment of the quantities to the H1 - H4 Bidders and the

procedure for the allotment of balance quantities, if any, after allotment of the quantities to H1 - H4

Bidders.

6. APMDC does not give Guarantee for the supplied Size of the material.

During 2008 APMDC offered Minimum Size 25mm &

Maximum Size 203 mm (10% Tolerance). APMDC has to mention Maximum Boulder Size to Lift.

The Buyers have to size the material at their cost. However, APMDC is also intending to go for portable

crushers. In such case sized material will be supplied. The cost of such crushing will be to the account of

Buyers.

7. They have not mentioned about the expected Chemical Grade Production and how they are going to sell that.

APMDC has to mention that also in Tender Documents.

APMDC reserves the right to sell the available Barytes with SG 4.28 and above as chemical grade separately

after meeting the blending requirements under the supply contracts.

8. There is no Clarity for Under Performance and Penalty

if any or any Extension of Agreement period.


in advance and intimate the same to the Buyers.


In case there is a deviation of more than 10% in the

supply of Barytes from the agreed delivery schedule in a month by APMDC, APMDC will return the interest earned on the payments received for the undelivered



agreed quantities, no penalty will be applicable and the contract period will be extended by a period equal

to the period of the Force Majeure event.

The term Force Majeure event shall mean any acts of God, war, civil riots/ movements, fire directly affecting the contract, flood, mine inundation, earthquakes,

hurricane, lockouts, strikes, civil war, etc.

In case there is a backlog at end of month, APMDC will clear the backlog. Only after clearing the backlog,

the next month‟s supplies will be carried out. In case the Buyers do not lift the backlog quantity,


9. After Awarding Tender, What is the Payment mode /procedure. Advance payment or BG, PDC?

Any Credit Period Extended to Successful Bidders.

Only Advance payment by DD/ RTGS will be accepted. There will be not be any credit supply.

10. What is the time Limit to form the Subsidiary? A period of 2 (two) weeks shall be given to the Successful Bidder(s) to form a subsidiary company

before signing of the contract(s). The period is extendable by APMDC at its discretion.

11. International Bidders are required to form an 100% Subsidiary under Companies Act immediately.

After Award of Tender and also to be the Co-Signatory

to the Contract with APMDC. They shall hold a Joint & Several Responsibility to

APMDC.


8. M/s Sibelco Asia

Sl. No.

Query Reply

1. Considering the intent of the company to sell 500,000 MT of API 4.2 Barite can the company please clarify

that if the bidder is awarded H1 he will be committed to 100,000 MT of API 4.2 but will have access to a secured 250,000 MT if desired (50:25:15:10)?

Participation in the tender implies that the Bidder commits to purchase a minimum of 1,00,000 MTs of

„Drilling grade 4.20 SG (A Grade) Barytes‟ and 40,000 MTs of „Drilling grade 4.10 SG (B Grade) Barytes‟ in case it is the Successful Bidder.

The H1 to H4 Bidders shall be offered the quantities in

the ratio of 50:25:15:10 in accordance with Clause 26 (iii) of the Tender Document.

2. Bidder requests the company to confirm that either

4.2 or 4.1 API Barite can be bid separately. Can the bidder submit a price for only one API product or do

you require a price submission for both 4.2 and 4.1?

The shortlisted/ eligible Bidders can participate in e-

tender or e-auction for either „Drilling grade 4.20 SG (A Grade) Barytes‟ or „Drilling grade 4.10 SG (B Grade)

Barytes‟ or both Grades.

3. Bidder requests company to clarify if the minimum price bidded will be inclusive of loading charges at the

mine site.

The price of the material is exclusive of all applicable levies, duties, taxes etc.

Loading charges shall be borne by the Buyers

separately.

4. Bidder requests company to clarify if the minimum price bidded will be inclusive of loading charges at the

mine site.

The price of the material is exclusive of all applicable levies, duties, taxes etc.

Loading charges shall be borne by the Buyers

separately.

5. Bidder requests company to clarify the current rate of statutory levies and local tax rates for 2015.

The Statutory levies like cess, VAT, Local Area development charges @ 1% of the contract price and

any other statutory levies, as and when fixed by the Government, are applicable.

6. Can company please clarify he indicators for the fluctuation in Royalty rate? Does the company expect a royalty rate review within the next 12 months?

Royalty is fixed by Government and not by APMDC.

7. Bidder requested the most recent lab test results With regard to quality, APMDC guarantees only SG of

based on API Barite specifications for the 4.2 and 4.1 Barites

the Barytes and does not guarantee other quality parameters.

8. Can the Company clarify that the 4.2 or 4.1 must be exported in lumps or is it acceptable to process into API Powder form within the boundaries of India

Buyers may grind the Barytes Lumps into powder at

other grinding facilities locally only for export

purposes. Buyers shall obtain prior permission of

APMDC for the quantities intended to be converted to

powder from time to time. Any variation in Statutory

levies in respect of conversion into powder shall be to

the account of the Buyers.